Mortgage Credit Availability Hits Lowest Point in Six Years

Mortgage credit availability has declined considerably, reaching the lowest point it has reached in six years, according to the Mortgage Bankers Association (MBA). The Mortgage Credit Availability Index (MCAI) dropped to 120.9 in August, which is a 60.8 point decrease from August 2019 (181.7). MCAI Trend (Source: Mortgage Bankers Association) Joel Kan, the MBA’s Vice President of economic and industry forecasting, remarked that uncertainty around the job market and its future was likely to be the reason behind tightening credit. When lending standards become tighter, fewer mortgages are available and fewer still borrowers…continue reading →

Pandemic Changes Homebuyers’ Preferences

TD Bank surveyed 380 borrowers from the South, 240 from the West, 210 from the Northeast, and 170 from the Midwest. To add, 6% of those surveyed were born in or before 1945. 39% were Millennials, and 27% from the Gen X, and 28% Baby Boomers. The 1000 borrowers, surveyed in June, provided revealing insights into how the pandemic was shifting homebuyers’ preferences. It was interesting that 7% of the respondents were keen to raise their housing expenses while 29% wished to bring down the housing payments. 64% of the respondents were just…continue reading →

Price Hikes can Signal which Way Demand is Going

One way to form an opinion about demand is to look at the number of listings that have seen a price hike. One reason for such increases is real estate flipping. Investors buy a property, do some work on it, and sell it at a better price. It is done quickly enough. Property prices generally rise to a range where the shopper demand is at the maximum level. This task is accomplished through adequate marketing and sales strategy.  Another way this works is via the big institutions. They buy property at a discounted…continue reading →

Mortgage Applications Reverse Month-Long Drop in Numbers

For the first time in four weeks, mortgage applications saw a hike, rising by 2.9% over the last week. The housing demand is atypically strong as we come to the end of summer, says the Mortgage Bankers Association.  The MBA's associate vice president of economic and industry forecasting, Joel Kan, stated in a press release that “Purchase applications were 40% higher than the same week last year, but the increase is skewed higher by being compared to Labor Day 2019. Nevertheless, there continues to be resiliency in the purchase market. Applications were up…continue reading →

Active Listing is a Crucial Index For Judging Demand

The housing market is in hot momentum. The median price of America’s single-family home is sitting at $354,000 this week. This is 9% higher than at the same time last year, and fractionally more than the week prior. As the things are spread out, it is likely that we will be 8-9% gainers on the yearly chart till October for sure. Holidays should restore some normalcy because sustained 8-9%, honestly, is too intense to be managed.  The inventory has been terribly short and buyers, pressed back for long by the pandemic, are on…continue reading →

Nonbank Mortgage Firms Increase Hiring Rate

The payrolls of the nonbank mortgage bankers and brokers cumulatively increased by roughly 2% on the monthly chart and 9% on the yearly chart, divulges the latest report of the Bureau of Labor Statistics. While the expectations were rather mute, given the traditionally lackluster buying numbers in fall, many nonbank mortgage houses are hiring at a decent rate, believing that it is the time to execute ambitious plans. For instance, Mr. Cooper proposes to hire 2,000 employees. AmeriSave Mortgage Corp. is looking for the same number of recruits. As early as in July, Freedom…continue reading →

More than Half U.S Properties Involved in Bidding Wars

Five times more U.S properties went into bidding wars in August, compared to the same month last year, says a Redfin data. Squeezed inventory has led to a hike in buyer demand which has seen as many as 54.5% properties undergoing a series of increasing price bids. In some of the metro areas, as many as 65% properties were involved in such wars.  “The market is on fire. There just isn't enough on the market to supply the huge demand for homes. A lot of military buyers are trying to take advantage of…continue reading →

Inventory Shortage Nullifies Benefits of Low Mortgage Rates

Redfin believes that all the good work done by low mortgage rates has been nullified by inventory shortage. Low mortgage rates had increased affordability but lack of homes has fueled up prices.  "Low mortgage rates are motivating many people to purchase a home, particularly those who want more space to work from home but because there hasn’t been an increase in the number of homes for sale since rates started dropping with the onset of the pandemic, many buyers end up competing for the same homes, driving up prices,” said Daryl Fairweather, Redfin’s…continue reading →

Millennials Continue to be in High Purchasing Spirits

Ellie May reveals that the millennials have shown robust spirits in July, quite in line with their purchasing highs of May and June. Buoyed by sub-3% mortgage rates, millennials (those between 21 and 40) locked in 3.256% as the average 30-year rate. On the year-over-year chart, the rate stood at 4.186%, same time in 2019. In terms of origination purpose for loans, their purchase column showed 61%, which is higher than 56% posted in June but a lot lesser than 76% on the year-over-year chart. Contrarily, refinancing’s 38% is lower than June’s 43%…continue reading →

Forbearance Plateaus after a 10-Week Long Fall

The coronavirus-related forborne rate of mortgages plateaued between Aug. 17 and Aug. 23, says the Mortgage Bankers Association. On the heels of a 10-week long fall, the rate finally held at 7.2% for the above mentioned week. In figures, this is equivalent to 3.6 million mortgages. Over the same period, the forborne rate of mortgages fell to 7.41% from 7.43% for the independent mortgage servicers.   Mike Fratantoni, Senior VP and Chief Economist for MBA, issued in a press release that "The share of loans in forbearance was unchanged, as the decline in the share…continue reading →